Leveraged-Loan Market
Could Face a Shakeout

NEW YORK -- After a year of frenzied demand, the leveraged-loan market, where risky companies raise financing, could be facing something of a reality check.

Although it is too early to speak of an outright trend, loans issued by a few companies are starting to struggle. Average bids in the secondary loan market have fallen slightly, while spreads -- or risk premiums -- have widened.